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Financial Incentives

Major Federal Financial Incentives for Energy Efficiency and Renewable Energy*

There are a multitude of financial incentives available to the public that vary by, among other things:

  • incentive type (credit, deduction, rebate, etc),
  • project type (renewable energy, energy efficiency, etc)
  • sector (residential, commercial, etc), and
  • location (federal, state, etc).
Below are some of the major federal incentives for the residential and commercial sectors.  Greenmodeling can help you find and take advantage of these, as well as many other, incentives that apply to your project and location.

Residential

Renewable Energy Tax Credit - A 30% federal and 35% state personal tax credit is available for elligible renewable energy installations (e.g. solar panels).  Restrictions apply.

Energy Efficient Mortgage (EEM) - The FHA allows lenders to add up to 100% of energy efficiency improvements to an existing mortgage loan with certain restrictions. Limits vary by location and the number of units in a dwelling and may not exceed the projected savings of the energy efficiency improvements.  Restrictions apply.

Commercial 

Energy Efficiency Tax Deduction - A tax deduction of $0.30 - 1.80 per square foot is available to owners of new or existing commercial buildings who install (1) interior lighting; (2) building envelope, or (3) heating, cooling, ventilation, or hot water systems that reduce the building’s total energy and power cost by 50% or more in comparison to a building meeting minimum requirements set by ASHRAE Standard 90.1-2001. Restrictions apply.

Renewable Energy Tax Credit - A 30% federal and 35% state corporate tax credit is available for elligible renewable energy installations (e.g. solar panels).  Restrictions apply.

Renewable Energy Tax Credit - A 2.1¢ per kWh corporate tax credit is available electricity generate for electricity generated by wind, geothermal, closed-loop biomass and sold by the taxpayer to an unrelated person during the taxable year.  A 1.1¢ per kWh credit is available for other eligible technologies.  Restrictions apply.

*Disclaimer: The information presented on the Greenmodeling web site provides an unofficial overview of key federal financial incentives and is subject to change without notice. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. 

While Greenmodeling staff strives to provide valuable informational resources, Greenmodeling makes no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. Greenmodeling disclaims all liability of any kind arising out of your use or misuse of the information contained or referenced on the Greenmodeling website.